Activity Rates and Product Costs using Activity-Based Costing Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Activity Cost Activity Base Casting $268,830 Machine hours Assembly 190,260 Direct labor hours Inspecting 26,100 Number of inspections Setup 53,200 Number of setups Materials handling 44,520 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 4,910 4,360 9,270 Direct labor hours 4,230 6,340 10,570 Number of inspections 1,320 420 1,740 Number of setups 280 70 350 Number of loads 840 220 1,060 Units produced 9,800 4,900 14,700 a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. a. Determine the activity rate for each activity. If required, round the rate to the nearest dollar. Activity Activity Rate Casting per machine hour Assembly per direct labor hour Inspecting per inspection Setup per setup Materials handling per load b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round the per unit amounts to the nearest cent. Product Total Activity Cost Activity Cost Per Unit Entry Lighting Fixtures Dining Room Lighting Fixtures